In an organisation the same incentive plan has strong effect on permanent employees and weak effect on temporary employees. What is the correct analysis?

Correct answer: Employment status and human needs affect results

The important idea is that a management principle may be generally useful, but its result can differ among people. Employees do not have identical needs, expectations, security, responsibilities, or attitudes. Permanent workers may value long-term benefits and stability more strongly, while temporary workers may respond differently because their employment is less secure or shorter in duration. Thus, the same incentive need not produce the same effect.

Option B is correct because employment status and human needs influence how employees react to an incentive plan. The situation does not prove that principles are wrong or useless. Options A and C make extreme claims, and option D incorrectly assumes identical human responses. The example illustrates the human and flexible nature of management principles.